July 17, 2008 08:55 ET

Changes to H2O Innovation Board of Directors, New Officers Nominated and Shares Granted

QUEBEC CITY, QUEBEC--(Marketwire - July 17, 2008) - H2O Innovation (2000) Inc. ("H2O") (TSX VENTURE:HEO)(ALTERNEXT:MNEMO:ALHEO) has announced changes to its board of directors, the appointment of new company officers, and the granting of 532,000 stock options.

As part of organizational restructuring following the recent acquisition of Itasca Systems Inc. ("Itasca") announced July 3, and considering the fact that the company is facing major challenges to ensuring its profitability, its growth, and the successful completion of the contracts in its order books, as well as the objective to put together its knowledge and know-how with its recent acquisitions, co-founder Frederic Dugre will now fill the position of president and CEO of H2O. Guy Goulet will remain Chairman of the Board and will act as liaison between members of the board of directors, the company's officers, its major shareholders, and the Alternext stock exchange in Paris and will play a greater role in business development. With his knowledge and extensive corporate and financing experience, Guy Goulet directly contributed to the development of projects undertaken by H2O, a company he co-founded in 2000. Among other things, he has been the driving force behind several financing initiatives that have ensured the company's long-term success.

With his expertise in finance and marketing of "cleantech" technologies, and his understanding of the water treatment industry, Frederic Dugre-a trained mechanical engineer-has made major contributions to the growth of H2O through his involvement in the company's many acquisitions since its founding.

Furthermore, with the acquisition of Itasca, Richard Alan Hoel, the company's former majority shareholder, and James Peterson, its former President, will now act as member of the board of directors and COO, respectively, in order to integrate their expertise into the company's operations and expand the skill set of the board and the management.

Richard Alan Hoel holds a J.D. in Law from Harvard Law School and a BA in Economics from Hamline University in Minnesota. He was a founding partner of the Winthrop & Weinstine law firm, established in 1979. He is an experienced businessman who has devoted the majority of his career to buying, restructuring, and selling a variety of companies. He has worked with banks and bank holding companies throughout the Ninth Federal Reserve District. As part of this process, he has been involved in the tax, securities and regulatory issues associated with acquisitions, divestitures and restructurings.

James Peterson holds a MBA from University of St-Thomas as well as a BA in Chemistry and Natural Science Distributive from Gustavus Adolphus College in Minnesota. He headed Itasca as president starting in 2003. He also filled a variety of management positions in a number of industries including Scherping Systems (General Manager), Ecolab, Inc. - Agrifoods Division (Vice President, Sales and Service), and H.B. Fuller Company (Divisional Sales Manager).

In addition, Annie Lemieux has been nominated Chief Financial Officer and Stephen Gauthier Senior Vice-president Corporate Finance & Investor Relations.

Annie Lemieux has a degree in Business Management from Laval University and became a certified accountant in 1992. She has over 10 years' experience with publicly-traded companies and private manufacturing companies, where she held a variety of finance management positions. "With her expertise and know-how, Annie Lemieux will assist us in our growth and in change management," explains H2O president and CEO Frederic Dugre. As part of her new role as Chief Financial Officer, Annie Lemieux will be mainly dealing with financial statements and all other publicly available financial information.

Stephen Gauthier holds a BA in Business Administration from Ecole des Hautes Etudes Commerciales de Montreal and has over 20 years' finance experience as an analyst, negotiator, and investment advisor with Financiere Banque Nationale and as Executive Director and Portfolio Manager with Magna Vista (a division of AGF). He also worked for nearly 10 years for the Canadian division of Pictet & Cie as Senior Vice-president and Chief of Investments.

As part of this organizational restructuring, the company announces the granting of a total of 532,000 stock options to its directors and certain key employees, in accordance with the terms and conditions of its new stock options plan. The grant is effective as of July 17, 2008. Each stock option gives the holder the right to acquire one common share for the price of CA$ 0.90 before July 17, 2013.

About H2O

H2O's mission is to develop, manufacture and market innovative, environment-friendly, products intended for drinking water production, wastewater treatment and industrial processes.

The TSX Venture Exchange and the Alternext Exchange assume no responsibility for the relevance or accuracy of this press release.

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